END OF 1998 – END OF 2000: FOCUS ON PROPERTY ASSETS AND DIVERSIFICATION OF PORTFOLIO OF SHARES

As Le Caudan Waterfront was growing in stature as the island’s premier shopping destination, so PAD’s investment portfolio began to be more focused on property assets, with these representing over 60 % of the value of the portfolio at the end of 1998. PAD had also begun to accumulate shares in the Flacq United Estates (FUEL) group of companies, which included Médine Sugar Estates (Médine). Combined, these two estates represent over 10% of the land area of Mauritius and as the island was progressing on the economic front, so land values would automatically grow given the island’s constraints. The shares of these companies were narrowly traded, and it took over a decade for PAD to become the largest individual shareholder in the group. In parallel with FUEL, investments were made in Naïade Resorts. In the early days of this entrepreneurial company, PAD held a 16% stake. By the year ending June 1999, PAD’s interest had been reduced to c. 10%. A number of cash calls from Naïade as the business was growing resulted in the company taking on board a number of new shareholders, and hence PAD’s dilution. The FUEL group via Forward Investment and Development Enterprises (FIDES), held at that time an important shareholding in Rogers and Company, which controlled New Mauritius Hotels (NMH). In 1999, Rogers paid out a special dividend in NMH shares, and the FUEL group subsequently passed its NMH shares on to its shareholders. The result was that by the end of 2000, the investments in NMH and Naïade Resorts represented 21% of PAD’s assets, with Caudan Development down to 26% of the portfolio, from over 40% in 1997.